EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0855*
SENATE BILL 855
Q2, Q1 3lr1424
CF HB 921
By: Senator McCray
Introduced and read first time: February 6, 2023
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 9, 2023
CHAPTER ______
AN ACT concerning 1
Baltimore City – Property Tax – In Rem Foreclosure of Vacant or Nuisance 2
Property 3
FOR the purpose of authorizing certain vacant property and or nuisance property located 4
in Baltimore City to be subject to a certain in rem foreclosure process; requiring 5
service of a complaint for in rem foreclosure to be served in accordance with the 6
Maryland Rules; providing for the distribution of surplus proceeds from the sale of 7
property subject to an in rem foreclosure; authorizing an in rem foreclosure order to 8
be set aside under certain circumstances; providing for the redemption amounts 9
required to be paid when an in rem foreclosure is set aside; requiring certain 10
procedures for an in rem foreclosure; requiring Baltimore City to take certain actions 11
to compensate the interested parties in property that has value and is acquired 12
through an in rem foreclosure; specifying the title acquired in an in rem foreclosure; 13
specifying the circumstances under which an in rem foreclosure judgment may be 14
reopened; and generally relating to in rem foreclosure of vacant or nuisance property 15
in Baltimore City. 16
BY repealing and reenacting, with amendments, 17
Article – Tax – Property 18
Section 14–874 through 14–876 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2022 Supplement) 21
BY adding to 22
Article – Tax – Property 23 2 SENATE BILL 855
Section 14–877 and 14–878 14–894 to be under the new part “Part VIII. Baltimore 1
City Judicial In Rem Foreclosure for Vacant or Nuisance Property” 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2022 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Tax – Property 7
14–874. 8
(a) (1) [Real] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 9
SUBSECTION, REAL property may be subject to foreclosure and sale under this part only 10
if: 11
[(1)] (I) the property consists of a vacant lot or improved property cited 12
as vacant and unsafe or unfit for habitation or other authorized use on a housing or building 13
violation notice; and 14
[(2)] (II) the total amount of liens for unpaid taxes on the property exceeds 15
the lesser of the total value of the property as last determined by the Department or as 16
determined by an appraisal report prepared not more than 6 months before the filing of a 17
complaint under this section by a real estate appraiser who is licensed under Title 16 of the 18
Business Occupations and Professions Article. 19
(2) REAL PROPERTY LOCATED IN BALTIMORE CITY MAY BE SUBJECT 20
TO FORECLOSURE AND S ALE UNDER THIS PART IF THE PROPERTY IS A VACANT 21
PROPERTY OR A NUISAN CE PROPERTY , AS DETERMINED UNDER THE BALTIMORE 22
CITY BUILDING CODE. 23
(b) (1) A county or municipal corporation may authorize by law an in rem 24
foreclosure in accordance with this part. 25
(2) A law that authorizes an in rem foreclosure shall: 26
(i) state the date after which real property may be subject to in rem 27
foreclosure under this part; 28
(ii) establish criteria for designating real property to be foreclosed 29
under this part; 30
(iii) authorize the county or municipal corporation to file a complaint 31
for an in rem foreclosure under this part; and 32
SENATE BILL 855 3
(iv) include administrative rules and procedures necessary to carry 1
out an in rem foreclosure under this part. 2
(c) (1) Subject to subsection (d) of this section, a county or municipal 3
corporation may authorize, by law, the sale of real property after an in rem foreclosure and 4
designate real property to be sold under this part. 5
(2) A law that authorizes a sale of real property after an in rem foreclosure 6
shall: 7
(i) state the date after which the real property may be subject to sale 8
after an in rem foreclosure under this part; 9
(ii) establish criteria for designating real property to be sold under 10
this part; and 11
(iii) include administrative rules and procedures necessary to carry 12
out a sale under this part. 13
(d) [Only] EXCEPT AS PROVIDED IN SUBSECTION (A)(2) OF THIS SECTION , 14
ONLY real property that consists of a vacant lot or improved property cited as vacant and 15
unsafe or unfit for habitation or other authorized use on a housing or building violation 16
notice may be sold under this part. 17
14–875. 18
(a) A county or municipal corporation may file a complaint for an in rem 19
foreclosure action in accordance with this part. 20
(b) The county or municipal corporation may not file a complaint for an in rem 21
foreclosure action unless: 22
(1) the tax on the real property has been delinquent for at least 6 months; 23
and 24
(2) (I) the right to appeal the notice of the property as vacant and 25
unsafe or unfit has tolled; OR 26
(II) THE RIGHT TO APPEAL THE NOTICE OF THE PR OPERTY AS 27
VACANT PROPERTY OR A NUISANCE PROPERTY , AS DETERMINED UNDER THE 28
BALTIMORE CITY BUILDING CODE, HAS TOLLED. 29
(c) All taxes shall: 30
(1) be included in the foreclosure action; and 31
4 SENATE BILL 855
(2) cease to be a lien against the real property if a judgment is entered 1
foreclosing the existing interests of all interested parties in the real property. 2
(d) The county or municipal corporation shall: 3
(1) file the complaint for an in rem foreclosure in the circuit court of the 4
county where the real property is located; and 5
(2) [within 5 days after filing the complaint, send notice and a copy of] 6
SERVE the complaint to each interested party [by first–class mail and certified mail, 7
postage prepaid, return receipt requested, bearing a postmark from the United States 8
Postal Service] IN ACCORDANCE WITH T HE MARYLAND RULES. 9
(e) The complaint for an in rem foreclosure shall include: 10
(1) the identity of the county or municipal corporation on behalf of which 11
the complaint is filed; 12
(2) the name and address of the county or municipal corporation; 13
(3) a description of the real property as it appears in the county land 14
records; 15
(4) the tax identification number of the real property; 16
(5) a statement that the taxes are delinquent at the time of the filing; 17
(6) the amount of taxes that are delinquent as of the date of filing; 18
(7) the names and last known addresses of all interested parties in the real 19
property and, if applicable, a statement that the address of a particular interested party in 20
the real property is unknown; 21
(8) a statement that the real property is: 22
(I) a vacant lot or improved property cited as vacant and unsafe or 23
unfit for habitation or other authorized use on a housing or building violation notice; OR 24
(II) A VACANT PROPERTY OR A NUISANCE PROPERTY , AS 25
DETERMINED UNDER THE BALTIMORE CITY BUILDING CODE; 26
(9) copies of any violation notice cited under paragraph (8) of this 27
subsection; 28
(10) a request that the circuit court not schedule a hearing on the complaint 29
until 30 days after the date that the complaint is filed; and 30 SENATE BILL 855 5
(11) a request that the circuit court enter a judgment that forecloses the 1
existing interests of all interested parties in the real property and orders ownership of the 2
real property to be transferred to the county or municipal corporation. 3
(f) A complaint for an in rem foreclosure may be amended to include all taxes 4
that become delinquent after the commencement of the in rem foreclosure action. 5
(g) (1) Subject to paragraph (2) of this subsection, an interested party has the 6
right to cure the delinquent taxes and liens on the real property by paying all past due fees, 7
payments, and penalties at any time before the entry of the foreclosure judgment. 8
(2) The right to cure the delinquent taxes and liens on the real property 9
extinguishes once the foreclosure judgment is entered. 10
14–876. 11
(a) A circuit court may not set a hearing for an in rem foreclosure until 30 days 12
after the complaint for an in rem foreclosure is filed. 13
(b) At the hearing, any interested party shall have the right to be heard and to 14
contest the delinquency of the taxes and the adequacy of the proceedings. 15
(c) If the circuit court finds that the county or municipal corporation sent notice 16
and a copy of the complaint to each interested party in accordance with § 14–875(d) of this 17
subtitle and that the information set forth in the complaint is accurate, the court shall: 18
(1) enter a judgment that: 19
(i) proper notice has been provided to all interested parties; and 20
(ii) the real property is: 21
1. a vacant lot or an improved property cited as vacant and 22
unsafe or unfit for habitation or other authorized use on a housing or building violation 23
notice; OR 24
2. A VACANT PROPERTY OR A NUISANCE PROPERTY , AS 25
DETERMINED UNDER THE BALTIMORE CITY BUILDING CODE; and 26
(2) order that ownership of the real property be transferred to the county 27
or municipal corporation on behalf of which the complaint was filed. 28
(d) (1) The county or municipal corporation shall record a judgment under 29
subsection (c) of this section in the land records of the county. 30
6 SENATE BILL 855
(2) The title acquired in an in rem foreclosure proceeding shall be an 1
absolute or fee simple title including the right, title, and interest of each of the defendants 2
in the proceeding whose property has been foreclosed unless a different title is specified in 3
the judgment entered. 4
(3) A judgment in an action under this part is binding and conclusive, 5
regardless of legal disability, on: 6
(i) all persons, known and unknown, who were parties to the action 7
and who had a claim to the property, whether present or future, vested or contingent, legal 8
or equitable, or several or undivided; and 9
(ii) all persons who were not parties to the action and had a claim to 10
the property that was not recorded at the time that the action was commenced. 11
14–877. 12
(A) IN THIS SECTION, “SURPLUS PROCEEDS ” MEANS THE PROCEEDS F ROM 13
THE SALE OF PROPERTY SOLD WITHIN 1 YEAR FROM WHEN THE P ROPERTY WAS 14
OBTAINED BY A COUNTY OR MUNICIPAL CORPORA TION THROUGH AN IN R EM 15
FORECLOSURE , THAT EXCEED THE SUM OF : 16
(1) THE DELINQUENT TAXES , FEES, AND PENALTIES ON THE 17
PROPERTY; AND 18
(2) THE VALUE OF ALL IMP ROVEMENTS MADE ON TH E PROPERTY AND 19
ALL COSTS INCURRED W ITH RESPECT TO DEVEL OPMENT OF THE PROPER TY PRIOR 20
TO THE SALE BY THE C OUNTY OR MUNICIPAL CORPORATION . 21
(B) (1) SURPLUS PROCEEDS SHAL L BE HELD BY A COUNT Y OR 22
MUNICIPALITY FOR A P ERIOD OF 12 MONTHS. 23
(2) AFTER 12 MONTHS, SURPLUS PROCEEDS SHA LL BE DISTRIBUTED 24
TO ANY PERSON WITH A N OUTSTANDING CLAIM ON THE PROPERTY , IN ORDER OF 25
PRIORITY. 26
(C) EACH COUNTY AND MUNIC IPALITY SHALL MAINTA IN A LIST OF 27
PROPERTIES OBTAINED THROUGH IN REM FOREC LOSURE THAT HAVE BEE N SOLD 28
WITHIN 1 YEAR FROM WHEN THE P ROPERTY WAS OBTAINED AND FOR WHICH THE 29
SALE HAS RESULTED IN SURPLUS PROCEEDS . 30
14–878. 31
(A) (1) EXCEPT AS PROVIDED IN PAR AGRAPH (2) OF THIS SUBSECTION , A 32
COURT MAY NOT REOPEN A JUDGMENT RENDERED IN AN IN REM FORECLO SURE 33 SENATE BILL 855 7
PROCEEDING IN ACCORD ANCE WITH THIS PART EXCEPT ON THE GROUND OF LACK 1
OF JURISDICTION OR F RAUD IN THE CONDUCT OF THE PROCEEDINGS T O 2
FORECLOSE. 3
(2) A COURT MAY NOT REOPEN ANY JUDGMENT UNDER P ARAGRAPH 4
(1) OF THIS SUBSECTION O N THE GROUND OF CONS TRUCTIVE FRAUD IN TH E 5
CONDUCT OF THE PROCE EDINGS TO FORECLOSE UNLESS AN APPLICATIO N TO 6
REOPEN A JUDGMENT RE NDERED IS FILED WITH IN 1 YEAR FROM THE DATE OF THE 7
JUDGMENT. 8
(B) A PLAINTIFF IN AN ACTI ON TO REOPEN AN IN R EM FORECLOSURE 9
JUDGMENT SHALL : 10
(1) EXCEPT AS PROVIDED I N SUBSECTION (A)(2) OF THIS SECTION , 11
FILE THE ACTION WITH IN 3 YEARS OF THE ISSUANC E OF THE IN REM FORE CLOSURE 12
JUDGMENT; AND 13
(2) WITHIN 30 DAYS OF FILING THE A CTION, SUBMIT EVIDENCE TO 14
THE COURT THAT THE P LAINTIFF HAS OBTAINE D A BOND EQUAL TO TH E 15
REASONABLE VALUE OF THE PROPERTY . 16
(C) IF AN IN REM FORECLOS URE JUDGMENT OF THE COURT IS SET ASIDE , 17
THE AMOUNT REQUIRED TO REDEEM IS: 18
(1) THE AMOUNT REQUIRED BY THIS SUBTITLE; AND 19
(2) THE REASONABLE VALUE , AT THE DATE THE JUDG MENT IS SET 20
ASIDE, OF ALL IMPROVEMENTS MADE ON THE PROPERTY AND ALL COSTS INCURR ED 21
WITH RESPECT TO DEVE LOPMENT OF THE PROPE RTY BY THE PURCHASER AND THE 22
PURCHASER ’S SUCCESSORS IN INTE REST. 23
14–892. RESERVED. 24
14–893. RESERVED. 25
PART VIII. BALTIMORE CITY JUDICIAL IN REM FORECLOSURE FOR VACANT OR 26
NUISANCE PROPERTY. 27
14–894. 28
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 29
INDICATED. 30
8 SENATE BILL 855
(2) “INTERESTED PARTY ” MEANS ANY PERSON HAV ING AN INTEREST 1
IN A VACANT OR NUISA NCE PROPERTY : 2
(I) WHO LAST APPEARS AS OWNER OF THE PROPERT Y ON THE 3
COLLECTOR’S TAX ROLL; 4
(II) WHO IS A MORTGAGEE O F THE PROPERTY OR AS SIGNEE OF 5
A MORTGAGE OF RECORD ; 6
(III) WHO IS A HOLDER OF A BENEFICIAL INTEREST IN A DEED OF 7
TRUST RECORDED AGAIN ST THE PROPERTY ; 8
(IV) WHO IS A TAXING AGEN CY THAT HAS THE AUTH ORITY TO 9
COLLECT TAX ON THE P ROPERTY; OR 10
(V) WHOSE IDENTITY AND A DDRESS ARE: 11
1. REASONABLY ASCERTAIN ABLE FROM THE COUNTY 12
LAND RECORDS ; OR 13
2. REVEALED BY A FULL T ITLE SEARCH CONSISTI NG OF 14
AT LEAST 50 YEARS. 15
(3) “TAX” HAS THE MEANING STAT ED IN § 14–801 OF THIS SUBTITLE . 16
(4) “VACANT OR NUISANCE PR OPERTY” MEANS A VACANT LOT O R 17
IMPROVED PROPERTY DE TERMINED TO BE A VACA NT PROPERTY OR A NUI SANCE 18
PROPERTY UNDER THE BALTIMORE CITY BUILDING CODE. 19
(5) “VALUE” MEANS THAT THE TOTAL AMOUNT OF LIENS FOR UNPAID 20
TAXES ON A PROPERTY DOES NOT EXCEED THE LESSER OF THE TOTAL VALUE OF THE 21
PROPERTY AS LAST DET ERMINED BY THE DEPARTMENT OR AS DETE RMINED BY AN 22
APPRAISAL REPORT PRE PARED NOT MORE THAN 6 MONTHS BEFORE THE FI LING OF 23
A COMPLAINT UNDER TH IS SECTION BY A REAL ESTATE APPRAISER WHO IS 24
LICENSED UNDER TITLE 16 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 25
ARTICLE. 26
(B) (1) IN ACCORDANCE WITH TH IS SECTION, BALTIMORE CITY MAY 27
AUTHORIZE, BY LAW, AN IN REM FORECLOSUR E OF VACANT OR NUISANCE PRO PERTY 28
ON WHICH THE TAXES A RE IN ARREARS. 29
(2) A LAW THAT AUTHORIZES AN IN REM FORECLOSUR E OF VACANT 30
OR NUISANCE PROPERTY SHALL: 31
SENATE BILL 855 9
(I) STATE THE DATE AFTER WHICH REAL PROPERTY MAY BE 1
SUBJECT TO IN REM FO RECLOSURE; 2
(II) ESTABLISH CRITERIA FOR DESIGNA TING REAL PROPERTY 3
TO BE FORECLOSED UND ER THIS SECTION; 4
(III) AUTHORIZE BALTIMORE CITY TO FILE A COMPLA INT FOR 5
AN IN REM FORECLOSUR E; AND 6
(IV) INCLUDE ADMINISTRATI VE RULES AND PROCEDU RES 7
NECESSARY TO CARRY O UT AN IN REM FORECLO SURE OF VACANT OR NUI SANCE 8
PROPERTY. 9
(C) BALTIMORE CITY MAY NOT FILE A C OMPLAINT FOR AN IN R EM 10
FORECLOSURE ACTION U NDER THIS SECTION UN LESS: 11
(1) THE TAXES ON THE REA L PROPERTY HAVE BEEN DELINQUENT 12
FOR AT LEAST 6 MONTHS; AND 13
(2) THE RIGHT TO APPEAL THE NOTICE OF THE PRO PERTY AS VACANT 14
OR NUISANCE PROPERTY HAS TOLLED. 15
(D) TO INITIATE AN IN REM FORECLOSURE ACTION , BALTIMORE CITY 16
SHALL: 17
(1) FILE A COMPLAINT FOR AN IN REM FORECLOSUR E IN THE CIRCUIT 18
COURT FOR BALTIMORE CITY; AND 19
(2) SERVE THE COMPLAINT TO EACH IN TERESTED PARTY IN 20
ACCORDANCE WITH THE MARYLAND RULES. 21
(E) ALL TAXES SHALL: 22
(1) BE INCLUDED IN THE F ORECLOSURE ACTION ; AND 23
(2) CEASE TO BE A LIEN A GAINST THE PROPERTY IF A JUDGMENT IS 24
ENTERED FORECLOSING THE EXISTING INTERES TS OF ALL INTERESTED PARTI ES IN 25
THE PROPERTY . 26
(F) THE COMPLAINT FOR AN IN REM FORECLOSURE S HALL INCLUDE : 27
(1) THE NAME AND ADDRESS OF THE APPROPRIATE A GENCY OF 28
BALTIMORE CITY; 29
10 SENATE BILL 855
(2) A DESCRIPTION OF THE PROPERTY AS IT APPEA RS IN THE LAND 1
RECORDS; 2
(3) THE TAX IDENTIFICATION NUMBER OF THE PROPER TY; 3
(4) A STATEMENT THAT THE TAXES ARE DELINQUENT AT THE TIME OF 4
THE FILING; 5
(5) THE AMOUNT OF TAXES THAT ARE DELINQUENT AS OF THE DATE 6
OF THE FILING; 7
(6) THE NAMES AND LAST K NOWN ADDRESSES OF AL L INTERESTE D 8
PARTIES IN THE PROPE RTY AND, IF APPLICABLE, A STATEMENT THAT THE ADDRESS 9
OF A PARTICULAR INTE RESTED PARTY IN THE PROPERTY IS UNKNOWN ; 10
(7) A STATEMENT THAT THE REAL PROPERTY IS A V ACANT OR 11
NUISANCE PROPERTY ; 12
(8) COPIES OF ANY VIOLAT ION NOTICE CITED UNDER ITEM (7) OF 13
THIS SUBSECTION ; AND 14
(9) A REQUEST THAT THE C IRCUIT COURT ENTER A JUDGMENT THAT 15
FORECLOSES THE EXIST ING INTERESTS OF ALL INTERESTED PARTIES I N THE REAL 16
PROPERTY. 17
(G) A COMPLAINT FOR AN IN REM FORECLOSURE MAY BE AMENDED TO 18
INCLUDE AL L TAXES THAT BECOME DELINQUENT AFTER THE COMMENCEMENT OF 19
THE IN REM FORECLOSU RE ACTION. 20
(H) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN 21
INTERESTED PARTY HAS THE RIGHT TO CURE TH E DELINQUENT TAXES O N THE 22
PROPERTY BY PAYING A LL PAST DUE TAXES AT ANY TIME BEFORE THE ENTRY OF 23
THE FORECLOSURE JUDG MENT. 24
(2) THE RIGHT TO CURE THE DELINQUENT TAXES ON THE PROPERTY 25
IS EXTINGUISHED ONCE THE FORECLOSURE JUDG MENT IS ENTERED . 26
(I) THE CIRCUIT COURT MAY NOT SET A HEARING FO R AN IN REM 27
FORECLOSURE UNTIL 30 DAYS AFTER THE COMPL AINT FOR AN IN REM 28
FORECLOSURE IS FILED . 29
(J) AT THE HEARING , ANY INTERESTED PARTY SHALL HAVE THE RIGHT TO 30
BE HEARD AND TO CONT EST THE DELINQUENCY OF THE TAXES AND THE ADEQUACY 31
OF THE PROCEEDINGS . 32 SENATE BILL 855 11
(K) IF THE CIRCUIT COURT FINDS THAT THE COMPLAINT WAS SE RVED ON 1
EACH INTERESTED PART Y AND THAT THE INFOR MATION SET FORTH IN THE 2
COMPLAINT IS ACCURAT E, THE COURT SHALL : 3
(1) ENTER A JUDGMENT THA T: 4
(I) PROPER NOTICE HAS BE EN PROVIDED TO ALL I NTERESTED 5
PARTIES; 6
(II) THE REAL PROPERTY IS A VACANT OR NUISA NCE PROPERTY ; 7
AND 8
(III) FORECLOSES THE EXIST ING INTERESTS OF ALL 9
INTERESTED PARTIES I N THE REAL PROPERTY ; AND 10
(2) ORDER THAT OWNERSHIP OF THE REAL PROPERTY BE 11
TRANSFERRED TO BALTIMORE CITY. 12
(L) BALTIMORE CITY SHALL RECORD A J UDGMENT UNDER SUBSEC TION (K) 13
OF THIS SECTION IN T HE LAND RECORDS . 14
(M) (1) IF PROPERTY SUBJECT T O FORECLOSURE UNDER THIS SECTION 15
HAS VALUE, BALTIMORE CITY SHALL: 16
(I) SELL THE PROPERTY AT PUBLIC AUCTION IN AC CORDANCE 17
WITH SUBSECTION (N) OF THIS SECTION; OR 18
(II) COMPENSATE THE INTER ESTED PARTIES IN THE PROPERTY 19
IN ACCORDANCE WITH S UBSECTION (O) OF THIS SECTION. 20
(2) IF PROPERTY SUBJECT T O FORECLOSURE UNDER THIS SECTION 21
DOES NOT HAVE VALUE , BALTIMORE CITY MAY RETAIN TITLE TO THE PROPERTY 22
WITHOUT PROVIDING CO MPENSATION TO THE IN TERESTED PARTIES . 23
(N) (1) A SALE OF PROPERTY SUB JECT TO FORECLOSURE UNDER THIS 24
SECTION SHALL BE CON DUCTED AT PUBLIC AUC TION IN ACCORDANCE W ITH THE 25
MARYLAND RULES. 26
(2) PROPERTY MAY NO T BE SOLD UNTIL AT L EAST 45 DAYS AFTER THE 27
ENTRY OF JUDGMENT OF FORECLOSURE . 28
(3) THE MINIMUM BID FOR T HE SALE OF THE PROPE RTY SHALL BE 29
THE TOTAL AMOUNT OF LIENS FOR UNPAID TAX ES ON THE PROPERTY . 30 12 SENATE BILL 855
(4) THE PROPERTY SHALL BE SOLD TO THE PERSON M AKING THE 1
HIGHEST BID. 2
(5) THE PERSON MAKING THE HIGHEST BID SHALL PA Y THE FULL BID 3
AMOUNT TO BALTIMORE CITY. 4
(6) IF THE MINIMUM BID IS NOT MADE OR EXCEEDED , BALTIMORE 5
CITY MAY BID THE MINI MUM BID PRICE AND PU RCHASE THE PROPERTY . 6
(7) BALTIMORE CITY SHALL DEPOSIT IN AN ESCROW ACCOUNT ANY 7
AMOUNT BY WHICH THE HIGHEST BID EXCEEDS : 8
(I) THE AMOUNT OF TAXES DUE ON THE PROPERTY ; AND 9
(II) THE VALUE OF ALL IMP ROVEMENTS MADE ON TH E 10
PROPERTY AND ALL COS TS INCURRED WITH RES PECT TO DEVELOPMENT OF THE 11
PROPERTY B EFORE THE SALE OF TH E PROPERTY BY BALTIMORE CITY. 12
(8) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED 13
INTO THE ESCROW ACCO UNT TO THE INTERESTE D PARTIES IN THE ORD ER OF 14
PRIORITY OF THE INTE RESTS OF THE INTERES TED PARTIES. 15
(9) AFTER A SALE , BALTIMORE CITY SHALL FILE A NOT ICE 16
INFORMING THE CIRCUI T COURT OF THE SALE AND STATING THE DATE OF THE SALE, 17
THE SALE PRICE, AND THE IDENTITY OF THE PURCHASER . 18
(10) A SALE OF A PROPERTY U NDER THIS SECTION IS FINAL AND 19
BINDING ON THE MAKER OF THE HIGHEST BID . 20
(O) (1) TO COMPENSATE THE INT ERESTED PARTIES IN A PROPERTY THAT 21
HAS VALUE WITHOUT SE LLING THE PROPERTY , BALTIMORE CITY SHALL: 22
(I) OBTAIN AN APPRAISAL OF THE PROPERTY BY A REAL 23
ESTATE APPRAISER WHO IS LICENSED UNDER TITLE 16 OF THE BUSINESS 24
OCCUPATIONS AND PROFESSIONS ARTICLE; AND 25
(II) DEPOSIT IN AN ESCROW ACCOUNT THE AMOUNT B Y WHICH 26
THE APPRAISAL EXCEED S THE AMOUNT OF TAXE S DUE ON THE PROPERTY . 27
(2) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED 28
INTO THE ESCROW ACCO UNT TO THE INTERESTE D PARTIES IN THE ORD ER OF 29
PRIORITY OF THE INTE RESTS OF THE INTERES TED PARTIES. 30
SENATE BILL 855 13
(P) (1) THE TITLE ACQUIRED IN AN IN REM FORECLOSUR E PROCEEDING 1
SHALL BE AN ABSOLUTE OR FEE SIMPLE TITLE INCLUDING THE RIGHT , TITLE, AND 2
INTEREST OF EACH OF THE DEFENDANTS IN TH E PROCEEDING WHOSE P ROPERTY 3
HAS BEEN FORECLOSED UNLESS A DIFFERENT T ITLE IS SPECIFIED IN THE 4
JUDGMENT ENTERED . 5
(2) A JUDGMENT IN AN ACTION UNDER THIS SE CTION IS BINDING AND 6
CONCLUSIVE, REGARDLESS OF LEGAL DISABILITY, ON: 7
(I) ALL PERSONS, KNOWN AND UNKNOWN , WHO WERE PARTIES 8
TO THE ACTION AND WH O HAD A CLAIM TO THE PROPERTY, WHETHER PRESENT OR 9
FUTURE, VESTED OR CONTINGENT , LEGAL OR E QUITABLE, OR SEVERAL OR 10
UNDIVIDED; AND 11
(II) ALL PERSONS WHO WERE NOT PARTIES TO THE A CTION AND 12
HAD A CLAIM TO THE P ROPERTY THAT WAS NOT RECORDED AT THE TIME THAT THE 13
ACTION WAS COMMENCED . 14
(Q) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 15
COURT MAY NOT REOPEN A JUDGMENT RENDERED IN AN IN REM FORECLO SURE 16
PROCEEDING IN ACCORD ANCE WITH THIS SECTI ON EXCEPT ON THE GRO UND OF 17
LACK OF JURISDICTION OR FRAUD IN THE COND UCT OF THE PROCEEDIN GS TO 18
FORECLOSE. 19
(2) A COURT MAY NOT REOPEN ANY JUDGME NT UNDER PARAGRAPH 20
(1) OF THIS SUBSECTION O N THE GROUND OF CONS TRUCTIVE FRAUD IN TH E 21
CONDUCT OF THE PROCE EDINGS TO FORECLOSE UNLESS AN APPLICATIO N TO 22
REOPEN A JUDGMENT RE NDERED IS FILED WITH IN 1 YEAR AFTER THE DATE OF THE 23
JUDGMENT. 24
(R) A PLAINTIFF IN AN ACTION TO REOPEN AN IN REM FORECLOSURE 25
JUDGMENT UNDER THIS SECTION SHALL : 26
(1) EXCEPT AS PROVIDED I N SUBSECTION (Q)(2) OF THIS SECTION , 27
FILE THE ACTION WITH IN 3 YEARS AFTER THE ISSU ANCE OF THE IN REM 28
FORECLOSURE JUDGMENT ; 29
(2) PAY ALL TAXES DUE ON THE PROPERTY BEFORE FILI NG THE 30
ACTION; AND 31
(3) WITHIN 30 DAYS AFTER FILING TH E ACTION, SUBMIT EVIDENCE 32
TO THE COURT THAT TH E PLAINTIFF HAS OBTA INED A BOND EQUAL TO THE 33
REASONABLE VALUE OF THE PROPERTY . 34
14 SENATE BILL 855
(S) IF AN IN REM FORECLOS URE JUDGMENT OF THE COURT IS SET ASIDE, 1
THE AMOUNT REQUIRED TO REDEEM IS EQUAL T O THE SUM OF: 2
(1) THE AMOUNT REQUIRED BY THIS SUBTITLE; AND 3
(2) THE REASONABLE VALUE , AT THE DATE THE JUDG MENT IS SET 4
ASIDE, OF ALL IMPROVEMENTS MADE ON THE PROPERTY AND ALL COSTS INCURR ED 5
WITH RESPECT TO DEVELOPMEN T OF THE PROPERTY BY THE PURCHASER AND TH E 6
PURCHASER ’S SUCCESSORS IN INTE REST. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2023. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.